Africa's industrialisation programme is advancing on multiple fronts. According to the 2026 edition of the Annual Review on Development Effectiveness (ARDE), manufacturing production is increasing and financial systems are becoming more robust across Africa. The ARDE has detected structural constraints, however, ranging from low value-added creation and shallow capital markets to infrastructure gaps and skills shortages. "These constraints continue to hinder the continent's productive transformation," the Review emphasises. In 2025, development efforts in Africa focused on strengthening manufacturing sector competitiveness, expanding SME financing, supporting industrial zones as value-added creation platforms, and accelerating digital transformation. Based on these four pillars, the African Development Bank is intensifying its support for industrial transformation by mobilising capital for industrial corridors, consolidating financial systems to support private sector growth, and promoting productive employment and skills development.

Modest Progress

The report indicates that Africa's industrialisation is progressing but remains modest. "Industrial development in Africa relies on a set of interdependent productive systems, including manufacturing capacities, industrial zones, financial systems and digital infrastructure. While progress has been made, these systems remain partially developed and weakly integrated, which hampers value-added creation, productivity gains and the expansion of competitive industries." The AfDB also estimates that advancing industrialisation is essential to Africa's economic transformation, as it enables the continent to diversify its economies and create productive jobs. Among the persistent structural constraints cited by the AfDB are limited access to long-term financing, infrastructure gaps and skills shortages. These constraints continue to slow progress. Meanwhile, the expansion of digital systems, evolving financial markets and more integrated industrial approaches are creating new opportunities to accelerate structural transformation.

Limited Structural Change

In short, African industrial production is rising, but structural transformation remains limited. "The African manufacturing sector has demonstrated resilience despite global economic difficulties, supported by recovering demand and increased investment in certain sectors. Manufacturing sector value-added increased from 281 billion dollars in 2020 to 322 billion dollars in 2025, reflecting gradual recovery and continued expansion of industrial production." This development reflects renewed dynamism in manufacturing activity. However, this expansion has not yet translated into significant structural change in African economies. Manufacturing continues to represent a relatively modest share of GDP and remains concentrated in low-technology-intensive activities, particularly food products, beverages and non-metallic minerals, while medium and high-technology industries represent only a small share of production.

Marginal Position

Africa's global footprint also remains weak, accounting for only about 2% of global manufacturing production and 1.4% of exports. This highlights the continent's still marginal position in global production systems. Performance remains uneven across regions, with North Africa leading industrial production, while recent progress in West Africa has only partially offset declines recorded in Southern Africa, where sub-regional underperformance is largely attributable to South Africa's stagnant growth, estimated at 0.6% in 2024, in a context characterised by persistent electricity shortages, transport and logistics bottlenecks, and broader structural constraints.